ASEAN INTEGRATING TEXTILE AND APPAREL INDUSTRIES

By D. Arul Rajoo

BANGKOK, Aug 14 (Bernama) -- With combined exports over US$30 billion, Asean
is undertaking vertical integration of the textiles and apparel sector within
the region to expand the sector and protect the interest of six million workers
involved in the industry.

International Trade and Industry Minister Mustapa Mohamed said
regional integration would offer opportunities for expanding intra-Asean trade
as well as Asean's exports to the global market.

"Malaysia, as the country coordinator for Asean in the textiles and apparel
sector, agreed to facilitate the process towards the integration. We want to
share expertise, boost market share and help the workers," he told Malaysian
media on the sidelines of the Asean Economic Ministers (AEM) meeting.

In Malaysia, the 662 licensed textiles and apparels companies that are in
operation have invested a total of RM8.3 billion (US$1=RM3.5), and last year,
domestic investments amounted to RM105.4 million while foreigners poured in
RM302.95 million. The sectors employs 57,000 workers.

Mustapa said Malaysia exported RM10.5 billion worth of textiles and apparels
in 2008, an increase of 4.1 percent and 1.9 percent respectively, compared to
2007.

In the first five months of 2009, the exports totalled RM3.5 billion,
compared with RM4.1 billion in the corresponding period in 2007.

The main export markets for Malaysia are the United States, Turkey, Japan,
Singapore and Mexico.

According to Mustapa, Malaysia has undertaken progressive steps in
liberalising the textiles and apparel products sectors.

On Aug 29, 2008, import duty for 33 lines on textiles and accessories were
reduced from a range of 20 to 30 percent to 10 to 20 percent while duties on 106
lines of textiles and apparel were abolished on Nov 14, 2008.

These include man-made textile materials and fabrics and cotton yarn. Under
the Common Effective Preferential Tariff, tariffs will be abolished by Jan 1,
2010.

-- BERNAMA